Income tax is tax levied on the income of a person by the government as per the provisions in the Income Tax Act, 1961. It is levied on the income earned during the year starting from the financial year, 1st April ending on 31st march.
An Income tax Return is a statement of Income earned to calculate tax liability and payment or refund of taxes to the government. Thus the purpose of filing the return is to report our income and taxes paid to the government.
Every person is liable to pay tax in India if his Income is more than the income notified by the government in the slab rates. The definition of person includes;
1. An Individual
2. A Hindu Undivided Family(HUF)
3. A Company
4. A Firm
5. An Association of Persons(AOP) or a Body of Individuals(BOI)
6. A Local Authority
7. Artificial juridical persons
The payment of income taxes can be made to the government manually i.e. cash/cheque in any designated bank branch or through e-payment. Payment should be made in Challan 280 in both the cases. The challan should be filled with utmost accuracy as it is important for further processing.
To e-file the income tax return, register on the Income Tax Department’s online tax filing site (incometaxindiaefiling.gov.in). Provide permanent account number (PAN), name and date of birth and choose a password.
The PAN will then act as an user ID.
Choose the required form:
Form ITR-1 (SAHAJ)is for individuals having income from salaries, one house property and other sources like interest.
Form ITR 4 is for individuals and Hindu Undivided Families having income from a proprietary business or profession, also used by proprietorship firms.
Form ITR 5 is used by most partnership firms as it is intended for persons other than individuals, Hindu Undivided Families, companies and person filing Form ITR-7.
Form ITR 6 is used by companies like one person company, private limited company, public limited company and other for-profit companies.
Form ITR 7 is used by persons, political parties, news agencies, universities and entities in receipt of income from property held under trust for charitable or religious purposes.
PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans.
Download Form 26AS, that summarizes tax paid against PAN. Validate the tax return with Form 26AS to check tax liability.
Fill form online or fill form offline & then upload on the site.
On submitting the ITR form, an acknowledgement number is generated. In case the return is submitted using digital signature, just preserve this number.
If the return is submitted without a digital signature, an ITR-V is generated and the same is sent to the registered email ID.